Western Power has recently provided confirmation to the Urban Development Institute of Australia (UDIA) that a 13.9% price uplift will be introduced on the 1st May 2014. The price increase is utilised as a method to recover tax payments for new assets that are gifted to Western Power and therefore will affect all new developments within Western Power’s network. This will impact developer’s cost, construction timeframes and will have possible negative flow on effects to homebuyers. Subsequently, the implementation has been put on hold until further notice.
Update: Western Power Posts Notice on Changes for Recovery of Tax (Click Here to Read Post) – 02/04/2014
Update: Western Power Posts Notice that implementation is On Hold (Click Here to Read Post) – 17/04/2014
WP’s FAQ: http://www.westernpower.com.au/aboutus/Recovering_tax_on_capital_contributions_.html
Horizon Power brought in a similar tax last year, set at 27.6%. It already applies to all new projects. Horizon Power’s Developer Pricing Information:
http://www.horizonpower.com.au/documents/Developer_Pricing_Information3695165.PDF